Key highlights include;
• ASEAN Common Carbon Framework to facilitate development of a
regional carbon market ecosystem
• Launch of the Malaysia Carbon Market Association (MCMA)
• Conceptualisation of a fundraising platform for domestic carbon
projects
Kuala Lumpur, 8 August 2024 – Bursa Carbon Exchange (“BCX”), a wholly-owned
subsidiary of Bursa Malaysia Berhad (“Bursa Malaysia” or the “Exchange”), is pleased to put
forth the second instalment of its Malaysia Carbon Market Forum (“MCMF”) in Kuala
Lumpur today. Themed “Empowering Climate Actions through Carbon Market,” MCMF
centres on exploring best practices to advance Malaysia’s carbon market ecosystem in
support of the national climate agenda. The event was officiated by Datuk Dr Ching Thoo
a/l Kim, Secretary-General of the Ministry of Natural Resources and Environmental
Sustainability of Malaysia (NRES), who also delivered the keynote address.
Commenting on the forum’s significance, Tan Sri Abdul Wahid Omar, Chairman of Bursa
Malaysia said, “Our carbon market is rapidly evolving, presenting enhancements and new
opportunities that Malaysia can leverage on, to advance its commitment to net-zero.
While Malaysia has significant potential for prospective carbon projects capable of
generating valuable carbon credits, the market continues to encounter challenges such
as limited liquidity and a reliance on international standards. Today’s forum brings
together participants from the public and private sectors, both domestically and
internationally, to exchange ideas and begin to address these challenges. We hope this
will accelerate progress in Malaysia’s carbon market and ultimately, foster a vibrant
carbon market.”
This ties in well with the ASEAN Common Carbon Framework, an initiative which is
expected to expedite the development of a cohesive ecosystem in the region, via carbon
market collaborations. The proposed regional framework was discussed in a roundtable
hosted by the ASEAN Business Advisory Council (ASEAN-BAC) of Malaysia, held in
conjunction with the forum. The framework intends to facilitate the development of
national carbon standards by interested ASEAN Member States, by encouraging mutual
recognition of methodologies and the sharing of resources in targeted strategic areas
such as capability sharing, and the interoperability within the ASEAN region. This regional
development is also timely given Malaysia’s upcoming Chairmanship of ASEAN in
2025, in part towards advancing the sustainability agenda.
Datuk Muhamad Umar Swift, Chief Executive Officer of Bursa Malaysia explained further,
“The proposed ASEAN Common Carbon Framework is in line with ASEAN’s collective
commitment to addressing climate change and supporting the vision of the ASEAN
Strategy for Carbon Neutrality1
. This is pivotal in developing member countries’ national
carbon standards, which is key to unlocking domestic carbon project opportunities.”
“The framework will foster greater linkages among voluntary and compliance carbon
markets within ASEAN, to promote market liquidity and enhance carbon pricing efficiency.
We envisage this will accelerate the growth of carbon projects, attracting local and
international credit buyers to the region.”
Another highlight of today’s MCMF was the launch of the Malaysia Carbon Market
Association (MCMA) by Datuk Dr Ching Thoo, NRES Secretary-General, in the presence of
several MCMA founding members’ CEOs and senior management, MCMA executive
committee members, and ASEAN-BAC Malaysia council members. The MCMA has been
established to facilitate and accelerate the development of the Malaysian carbon market
through inputs towards the formulation of national carbon market policies, talent
capability building and strategic collaborations with domestic and international carbon
market participants.
“Bursa Malaysia is pleased to be among the founding members of the MCMA and to
contribute a seed fund, to mobilise initiatives needed to strengthen the carbon market
ecosystem in Malaysia. Specifically, our contribution aims to nurture the local talent pool and support ecosystem players to be ready to undertake opportunities via carbon markets,” added Datuk Muhamad Umar.
Notably, this year’s MCMF established an official collaboration with the International
Emissions Trading Association (IETA), with Dirk Forrister, the CEO and President of IETA,
attending as both a partner and speaker. According to Dirk, “In order to achieve the goals
of the Paris Agreement, we need to develop carbon markets in all corners of the globe, to
ensure that reductions are made wherever they can, and that efficient systems allow
those reductions to flow to where they are needed. A robust carbon market in Malaysia is
one of the key elements to connect global buyers to the immense potential of climate
action in Malaysia.”
Other speakers at the forum included among others, representatives from the Indonesia
and Thailand governments; independent environmental attribute standards such as Verra,
Gold Standard and the I-TRACK Standard Foundation; as well as carbon associations from
Malaysia, Indonesia and Thailand. The forum also featured speakers from the energy
sector, including the Energy Commission of Malaysia, PETRONAS and Sarawak Energy
Berhad; carbon project developers such as Permian Global and SaraCarbon; and financial
sector representatives from CIMB Bank and Macquarie Group.
The MCMF’s final plenary session that focused on financing carbon projects concluded
with an invitation for participants to join Bursa Malaysia’s Industry Working Group (IWG) to
address financing gaps in carbon projects. The IWG’s goal is to develop a conceptual
framework for a fundraising platform for domestic carbon projects. Relevant stakeholders
such as project developers, carbon project consultants, investors, or financial institutions
are encouraged to register their interest via the interest form.
The Malaysia Carbon Market Forum that was inaugurated in 2023 is BCX’s annual flagship
event dedicated to driving conversations and actions that shape and advance Malaysia’s
carbon market. The forum continues to raise awareness and facilitate for knowledge
sharing and networking among the business community and carbon market players, with
the goal of supporting Malaysia’s and ASEAN’s transition to a low-carbon economy.
This year’s MCMF attracted over 350 physical and more than 400 virtual attendees from
both international and local carbon communities. Penan and Kenyah artisans from
Sarawak were invited to showcase their crafts as part of BCX and Sarawak Energy’s
support for these communities.
